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tv   [untitled]    May 17, 2014 9:00pm-9:31pm PDT

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nonprofits to stay in the zip code would be up to $42 and $5,900.40 it went up to $86 on average. again, this is just based on the surveyably and, of course, the mayor's office of housing this is a snapshot of many of our organizations are facing. they were convened in december and meeting monthly consisting of a variety of departments and private philosophical that i and i want to thank the nonprofit organization for your participation over the last couple of months and president chiu and others for leading the progress. it's a guiding document that our
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office will champion and we're working on several the recommendations in the report including increasing fees for you community facilities and the identification for city owned buildings and affordable housing developments and drafting the mid-market special use district which will hopefully come to the board shortly i'll, calling for a hearing in september and after the city departments are looked at long term recommendations in the first round of the applications to be funded. we side have a presentation by mr. chiu but i'll mention the kickal nature is not new we need to pressure long-term and short-term recommends, in fact, during the downturn the gallery on significant and market this
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grant is targeted to support 35 nonprofit organizations is that help with the services and 35 nonprofit 70 over the next year we've hoping this will make an incredible impact to help and city san francisco. >> i'd like to acknowledge supervisor avalos. thank you president chiu i want to thank you and supervisor kim for putting this measure together with our supplemental and we have 0 our reserve thank you tom and others for the nonprofit and the arts community to put 0 together today's presentation in a plan to allocate the funds to support our nonprofits and local arts organization back in that 1y689
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i was supporting my brother an artist who had to leave san francisco they were evicted from the studios and this was happening at that time of great economic activity in the city now we're about 14 years later facing a city that is experiencing great growth but many people that have been working doing art are finding it harder to keep up with the rising costs of commercial space where rents are paid for artists and nonprofit organization it make senses we are trying to protect those vitality organizations with when it comes to the arts that are escalator for local activity that brings tourist and our nonprofits the great services that show san
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francisco to be the camp pact city it really is that. in, you know, i'll let the tom and bryan chiu make their presentation i want to make a designation between the source of funding for the nonprofit the nonprofit part of the supplemental that was driven around nexus for tax revenue we're doing it for the need is high and the artists side i talked talked to artists in larger organizations, you know, over especially, after i introduced the $2 million but before that several members of the communities were concerned about how artists were being driven out of the city once again and my conclusion of $2 million was based on a need greater than $23 million so we
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didn't have the revenue that was being generated viewing the tax break but we did it because the demanded was great and we supported the nonprofits based on a next us of revenue because of the nonprofit organizations there's a similarly to how great the need is to help the organizations to stay here in san francisco to support the arts in the city. look forward to our presentation and colleagues look forward to you supporting this to stay in san francisco and in business >> supervisor mar. thank you to the supervisor avalos and others go the spring to the fall were eye-opening i want to thank tom and bryan chiu with the hard work and strongly
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supportive of the arts organizations and artists being a bit work to stay in the city many live in the richmond district many people fearing being pushed out of the city. i'm appreciative of you're looking best practices like denver looking at the rent induces but the technical assistance. i like the impels you've started to establish as well in determining fairness for as many organization to be supportive i want to say thank you for the hard work that will keep the arts organizations? the city. thank you very much. >> tell you why nodded hear from
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mr. chiu. >> i'm the housing authority and developments we'll be jointly presenting the highlights and an update to moving forward. you all have copies of power point presentation and we've forwarded you copies of the report. i'll forward this we're not going into depth of the thirty hemsz recommendation and at the end if you have very specific questions of the elements. again as supervisor kim stated this what was driven by the b l a report on october 9th in november it was created the working group we have four meetings from december to mark
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it was composed a of a wide-ranging membership of city departments and nonprofit organizations we included focus groups and surveys with the members of the city departments not you represented and private philanthropy. the focus of our report looks first at the universe of - although it will not be limit to the city investment over the last 3 years we've funded approximately 8 hundred and 8 groups in 2011 almost 8 hundred in 2012 and seven hundred groups if you look at the groups about 25 thousand more than justice a nominal grant there's
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approximately 5 hundred this compares do over 5 thousand nonprofits throughout the city. we did a survey of the organizations you have an idea how many of the groups might need assistance immediately or within the 5 years we've got surveys of the organizations 86 respond and 0 got information on the one hundred and 49 locates. of those respondents 55 percent said they'll be interested if sharing space with nonprofits 40 percent said they'll be interested if sharing back office administration. i think one important element we're not just looking at things like rental subsidies that may go on indefinitely but create as many structural fixes so we'll not be back here for 5 years
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facing the same problem we've provided information on the location of those properties that were identified back to us you can see the 94103 and 3 and not surprisingly a large number of the nonprofits is that are at risk. we looked at specifically at those groups that have leases that be expiring from in the years or expiring month to month termed without warning. of all the properties about one hundred and 49 different locations and about one hundred and 14 of those that are owned and leased by organizations 64 have leases conspiring in the next four or five years 16 of
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those are in the two zip codes and so it is spread throughout the whole city. those are is most indecently popped and of the 64 property that are in risk of termination within the next 5 years more than 2/3rd's said it is essential because of the nature of their services to be located in their current neighborhood we have to think about that 1/3rd could be moved to other neighborhoods that's itself upside and finally we asked in the survey what is the type of technical assistance that would most assist you and on page of the lease negotiation came out they're not experts in negotiating with landlords identifying spaces people need assistance and have a tough time
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finding real estate brokers to analyze the lease and many of them need to reexamine their own space needles some needs to downsize so those are some of the ideas of the technical assistance they felt more important. >> good afternoon. supervisors. so i'll share some of the analysis practicing in the field looking at san francisco and the exist model prior response in 2009 when we saw the economic boom and as well as looking at nationally and how they're helping nonprofits sustain as an increase in the cost of living in cities across the industry its not the only city san francisco facing the challenge
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nationally we're above what we're seeing in others cities. one model you've heard we talk about is the community art stabilization trust this is a program that was founded by the kenneth foundation that succeeded with a $5 million non-exit cap that allows for the acquisition of release real estate for the deed restricted use in a 7 to 10 year acquisition to supporting them and helping them set up their capital campaign it's been effective we think with small and midsize organizations that might not have the capacity to enter the real estate market and to create a second marked for the art and crafts it will be
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capacity to social services in non-arts organizations. the cap model allows for master leasing or shared spaces where numerous non-nonprofits low come together with the cap model for social services. cap as a model has been effective in identifying under utility or below utilized spaces and we do is that potential for the cast to be for organizations as well. another model is the partnership had an as enter departmental focusing on arts and culture in market between the arts and the office of economic workforce development and the arts commission but also working with the nonprofit partner fund.
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this partnership has provided feasibility and capacity assessments for nonprofit arts groups conducted by the community fund and effectively helping to place them in the central corridor. the services offered provide assistance so real estate broker services and feasibility he services and agricultural services we know that many of our mid survivors meet the middle size space so they're a significant tenant improvement requirements. they've also through the market paper we've hemmed with the purchase agreements and as well as grants and loans to help them get established. working nationally we have the denver share space models effective in denver with the
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building and the sustainability assistance this is for heck assistance helping them with sample leases and others templates that allow them to be competitive. another great model peer to peer learning and networking to lay the nonprofits to learn from one other in management and to allow for policy advocacy. moving on to our actual recommendations in the report you'll see a numerous 5 different areas of recommendation. the first is in technical assistance support. and this recommendation budget we're talking about an immediate require with the space analysis and the space and financing and capital financial support and car locates and linkage to
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broker services in identifying vacant buildings. this mid size organization are disadvantaged with the real estate market the cost regarding legal assistance and real estate brokerages is hard so by looking at economies of sale and providing the technical services through an intermediate it will be cost effective rather have them higher their own lawyers and real estate brokers but look at economies of scale i'm going to turn it over to brian to look at the other region areas >> the second set of recollections focused on planning and zoning working with vendors and look at another incentives. those easier i think tend to be
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more mid to long term one area of development impact fee is something the city is currently examining we're working with the cities controller's office to looks at the central south of market area to determine whether or not there can be a next us identified between the development and impact on social services and arts eased culture organizations is if that nexus is identified there's maybe an opportunity to have a impact fee within the plan area. it's something that if feasible could be expanded to other neighborhood that nexus study maybe be done neighborhood by neighborhood we're looking at other suggestion through the b l a report many is of them are
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probably going to be prioritized a little bit lower because of the legal oifksz people asked about a inclusionary ordinance could be imposed to that the developer would be required to provide a certain percentage of market rate spaces based on the state law it's unlikely so while we wanted to crew it with the report we're not going to highly prioritize i'm not going through all the elements but we'll touch on the developer and community agreement tha that came up we examined the nauseated agreements in the mid-market corridor. i think one of the issues that's come up in whether or not the exciting core businesses would be able to include the space
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within their office units many of the challenges are those organizations is are prohibited by terms of their lease to include any sub lessees that those are office are not ideal because of the lack of privacy and lighter even if those offices have temporary spaces the city didn't want to be put in the position of encouraging nonprofits to move into the spaces and when they need to expand have to ask the nonprofits to leave so creating a permanent structure solution there are arguments we can reach out to the businesses that a community agreement may not be the best option i think developer agreement may offer a different opportunities because of the way the city is oh, the benefits to the developer we y
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maimay will will working pot city on a case by case base. the next area was identifying available space. i'm sure you're aware of that really is one of the key elements of success if this program is going to work. you can offer hours of technical services but if you can't identify a space within the city that's not good every possible opportunities we're going to be examining city owned building and congest spaces unified school district spaces we're going going to be looking at the possibility of storefronts along the commercial store fronts and working with the office of
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economic workforce development with the infrastructure the office of community investment and looking at transbay and mission bay and shipyard every one of our affordable housing advertisements many have store fronts vacating vacant for years we're looking at s r os and the face community has commissioner bassham come to us saying their congregations have vacant spaces of out of 7 days a week we're also looking at long-term opportunities is is it possible to look at creativity financially i filling up to create multiple tenant spaces especially transportation is easy by low income individuals. funding that we talked about in a little bit is not intend for
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that kind of acquisition and rehab business it's important to look at the possibility to create a large multi tenant space in especially intense districts. >> so the next budget of the recommendation is related to directly financial assistance to nonprofits. the various areas we've imaged in intermediatey providing the assistance about include the acquisition and rehabilitation fund to carrier space for the tenants to upgrade of or that space to be fully accessible to the 0 public again for long term structural impact this is not an ongoing subsidy we don't want to
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encourage speculation or the landlord to raise the rents knowing that rentals are receiving a subsidy but we want to encourage the time restricted allocation for rental stipend for a period of time or to assist the nonprofit in transition it will support security deposits for people needing to put money down to secure the space. we'll look at the tax credits as part of a board long-term financing solution this is something that's been used in the trust you model for educates that are pooled together as a small project but benefit by perhaps pooled under a board umbrella like the stabilization trust. we're going to look at the colonel last and the cost of
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doing business and i'm sure you're aware of those cities has provided those we've heard from in time stakeholders >> before we moved supervisor breed has a question. >> yes. i have a question this is $2 million for one year in particular specifically related. >> in the recommendation section there will, $2 million over a 3 year period of a scope of work for the nonprofit intermediate and this is one 0 thing that rehabilitation relates to the work he know how expensive the ada work and it's i'm trying to understand how this can truly have an impact on the facilities and have you been
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able to identify certain facilities that could benefit from the rehabilitation support that's such an expensive thing to do. >> certainly we don't anticipate the 4.5 inclusive will solve all the issues for the code safety issues and ada issues we'll be working with the nonprofits facing displacement so there will be emergency improvements we'll have an assessment of the totals needs but don't anticipate those needs both anecdotal reasonable person through the proposals causing calling for last year alone we
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saw a total of $5 million with budget under $3 million so that's in the small midsize budget range in the latest current space program we know this is a very small beginning so it's really dedicated to the emergency of two spaces threatened in the next 2 months. >> so it's rental subsidies. >> for a pester period of time they couldn't open their doors due to a code compliant barrier. >> thank you. so moving forward to say public-private partnerships we know this is not a problem that the city soft we have to work with our private philanthropy and owners and brokers as well as our corporate partners we're
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looking for models to hopefully use the cities investment to leverage private dollars. i know we've conducted interviews about the san francisco foundation the arts commission has convened over 7 fountains in the art and culture to look at the recommendations and anticipating the potential relieve of the fund we've work with private philanthropy it leverage those investments in the social services of the allocation. so moving on to the next steps we heard from the board an understanding of the timeline of the allocation we know that many nonprofits have an immediate need to get the resources into the community as soon as possible and our recommendations are two for the recommendation
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of the report we'd be rooshg for the request of the proposals simultaneously a request from the proposals of the may i have and from the rfp from the commission and select two enter medicines by city review in the emergency staff review it will be in may to june have to select the program and into enter into contacts with the city. in july we'll be checking in with the partners to prioritize accountability long terms recommendations and come back proposing to come back to the board in may 2015 with the results of the impact from our first year intervention and we'll be excited to return in september at a hearing to give an update in terms of the
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progress. in other words we have outlined a few recommendations there be procedure from the mayor's office of housing of community development and the arts commission the project oversight will be a joint committee including mo h is arts commission and grants for the arts and department of public health and the human services and the department of the office of economic workforce development and the request will be for a 3 year period 2014 through 2017 they'll be in good financial standing what we work with the nonprofit with those in social services and must have a strong nonprofit sector for the arts intermediatey and they